Required journal entries for this event:

A Ltd is a separate cash-generating unit (CGU) for the group. As such, the management conducted an impairment test for purchased goodwill for indication of impairment on an annual basis.B Ltd assessed that 15% of the total goodwill acquired by the Group was impaired at group level for the financial year ended 31 May 2019 in its investment in the subsidiary. It was further assessed that the goodwill above was impaired by additional 10% for each financial year ended 31 May 2020 and 31 May 2021. Impairment losses were classified as Other expenses accounts at group level.